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Apple (AAPL) Expected to Attract Customers With Cheaper iPhone

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Apple (AAPL - Free Report) is expected to announce its new low-cost iPhone SE with 5G facilities in the annual spring product launch event.

Apple iPhone SE is currently priced at $399, and with the launch of the 2022 version, the company is expected to attract new cost-wary customers.

The new iPhone SE is the  follow-up device to the iPhone SE 2020 and is expected to feature a faster processor and improved camera features. The primary target market for the new iPhone SE is expected to be the United States, Japan and Western Europe, since historically these have been the top markets for iPhone SE sales.

The new iPhone SE is expected to account for 10% of iPhone shipments globally.

In the year-to-date period, Apple shares are down 10.3% compared with the Zacks Computer-Mini Computers industry’s fall of 8.1% and the Zacks Computer and Technology sector’s fall of 15.9%.

Apple Inc. Price and Consensus

Apple Inc. Price and Consensus

Apple Inc. price-consensus-chart | Apple Inc. Quote

Apple’s Focus on 5G Capabilities Drives Future Prospects

Apple has been focused on bringing 5G capabilities to its flagship products, which began with iPhone 12 and continued with the launch of the latest iPhone 13. The new iPhone SE features custom antennas and radio components for faster features to meet customers’ demand for powerful devices with better connectivity.

However, per a Reuters statement, most countries are still not equipped with proper 5G facilities, thus Apple products might not be able to create a unique and differentiated experience amidst competition.

Apple’s launch of the new 5G-enabled iPhones is more of a strategy to leverage on 5G connectivity facilities when the technology evolves in next two years.

Apple has been historically blamed for losing market share in countries like China and India due to its premium pricing. However, with the launch of the new cost-effective iPhones, the company is expected to see growing demand for its flagship product in such markets.

Zacks Rank and Other Stocks to Consider

Apple currently carries a Zacks Rank # 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are few other top-ranked stocks worth considering in the broader Computer and Technology Sector.

Axcelis Technologies (ACLS - Free Report) carries a Zacks Rank #1.

Axcelis shares are down 21% in the year-to-date period compared with Zacks Electronics - Manufacturing Machinery industry’s fall of 17% and the Computer and Technology sector’s fall of 15.9%.

ADTRAN (ADTN - Free Report) also carries a Zacks Rank #1.

Adtran shares are down 13.9% in the year-to-date period compared with Zacks Communication - Infrastructure industry’s fall of 27.4% and the Computer and Technology sector’s fall of 15.9%.

Advanced Micro Devices (AMD - Free Report) is a Zacks Rank #1 stock.

AMD shares are down 28.5% in the year-to date period compared with Zacks Electronics - Semiconductors industry’s fall of 16.8% and the Computer and Technology sector’s fall of 15.9%.